That is not saying that you or your parents are not liable for profit, just that until you hit that mark - there is no reporting done.
I recommend just for your sake in the future, that you subscribe to an eBay / GoDaddy app called OutRight. It's an integrated eBay / PayPal bookkeeping app that I believe is free for basic tracking. The sooner you start, the better as it automatically tracks eBay sales (product and shipping income), eBay costs (COGS, eBay fees, PayPal fees, shipping cost - which you should be doing through eBay) and populates the fields automatically. If you used the PayPal debit card to purchase an item for resale, that transaction can do to Cost of Goods Sold.
Might as well get started sooner than later. Plus if you use the PayPal debit card, you can setup accounts to track your spending while in college as a nice bonus feature.
if in USA , visit your local library for books
on how to do business book keeping so u can
file a 1040 tax return with a Schedule C.
it is simple to read any of the 'for dummies' or
'idiots guide to' Tax filings . a librarian can help u
start.
u got until April 15 , 2015 to file for any 'income' u make
in 2014.
I am a 17 year old senior in high school and have been selling items on eBay for 3 years or so now. I have been selling items seriously the last year in order to have money for books in college and to have some spending money in college. It started out as selling a few of my grandmothers things after she passed away but now the last year I have sold around $2000-$3000 in items, mostly of which were laying around the house that my parents no longer wanted, items picked up at sporting events (cups, stadium give aways, ticket stubs etc) and then lastly some items that I paid for and then resold for a profit, but these items make up about 15%-20% of that $2K-$3K. I just got an email tonight from Paypal asking about a 1099-K form and I am a little freaked out. I can easily produce my sales records but how complicated will it be to file taxes and such? Also the IRS has harrassed my dad relentlessly the last 5 or 6 years and I do not want that to happen to me. I could really use some helpful advice, thanks.
